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A new study reveals that installing compressed air energy storage systems in abandoned oil and gas wells could improve system efficiency by 9.5%. Abandoned fossil fuel infrastructure could play a key role in the energy transition if repurposed for underground energy storage. According to a recent study from Pennsylvania State University, abandoned oil and gas wells can be integrated into compressed air energy storage (CAES) systems to harness their natural geothermal heat. Rather than being a burden on the environment, abandoned wells could be an asset for energy storage. Researchers have found that this combination can increase the efficiency of CAES by almost 10%. Traditional CAES systems compress and store air underground when energy demand is low and release it to power turbines during peak loads. Compressing the air heats it and adds pressure; expansion cools the air. Storing and utilizing the heat generated by compression can help improve system efficiency and potentially store more energy, which is why adding geothermal heat from AOGW can be such a valuable asset for CAES. Until now, these systems have struggled to reach commercial adoption due to their complex economics, but improved efficiency could pave the way for widespread deployment and make CAES projects more attractive to investors and utilities considering grid-scale storage. The report also notes that AOGWs offer some unique advantages, such as stability and natural isolation. They are also easy to find: the U.S. Department of the Interior has documented 130,000 orphaned oil wells, and the Environmental Protection Agency estimates there are two to three million more nationwide. These reuse strategies not only address the challenges of renewable energy integration but also offer economic and environmental benefits by revitalizing brownfield sites and reducing the carbon footprint of energy production, the studys authors say, noting that these storage systems can be easily linked to renewable energy generation. Reconditioning existing wells is much cheaper than drilling new underground energy storage facilities, which can be prohibitively expensive. Researchers also note that this approach can reduce a projects payback period by one year and help lessen the economic impact, as the cash inflow each year can reach more than $10 million. Retrofitting AOGWs can also help secure employment and create clean jobs in regions like Pennsylvania (where the study was conducted) that rely on the fossil fuel industry, while reducing the potential environmental impacts of undeveloped wells. The study, “ Underground energy storage using abandoned oil & gas wells assisted by geothermal,” was published in the Journal of Energy Storage and supported by the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy and conducted through Penn State’s Repurposing Center for Energy Transition, which seeks to repurpose fossil fuel infrastructure for energy transition applications. |
